NORMA Group’s sales rise to around EUR 1.02 billion in 2017

• Organic sales growth at 8.6 percent
• Adjusted EBITA margin remains at a high level of 17.2 percent
• Dividend increase of EUR 0.10 EUR to EUR 1.05 per share proposed
• Forecast for 2018 published

MAINTAL, Germany–(BUSINESS WIRE)–NORMA Group achieved sales of more than EUR 1 billion for the first time
in fiscal year 2017.

Group sales rose by 13.7 percent to EUR 1,017.1 million compared to the
previous year (2016: EUR 894.9 million). Organic growth at NORMA Group
was strong at 8.6 percent. The acquisitions of Autoline, Lifial and
Fengfan contributed an additional EUR 57 million to sales. Negative
currency effects reduced sales growth by 1.4 percent.

Adjusted earnings before interest, taxes, depreciation and amortization
of intangible assets (adjusted EBITA) rose by 10.8 percent to EUR 174.5
million in 2017 compared to the previous year (2016: EUR 157.5 million).
The adjusted EBITA margin declined slightly mainly due to higher
commodity prices. At 17.2 percent, the adjusted EBITA margin was in line
with the forecast of more than 17 percent (2016: 17.6 percent).

Net operating cash flow declined by 10.5 percent to EUR 132.9 million
(2016: EUR 148.5 million). Adjusted earnings per share rose to EUR 3.29
(2016: EUR 2.96). Tax cuts in the U.S. led to one-time non-cash deferred
tax income of EUR 33.9 million. This one-time effect was not included in
the adjusted result for the period and therefore not shown in adjusted
earnings per share.

The unadjusted profit for the period amounted to EUR 119.8 million and
is 57.9 percent above the previous year’s level (2016: EUR 75.9
million), in particular due to the aforementioned one-time tax effects.
As a result, the unadjusted earnings per share for the year 2017
amounted to EUR 3.76 (2016: EUR 2.38).

“NORMA Group experienced strong growth in all regions in 2017 and
surpassed the EUR 1 billion mark in annual sales for the first time
ever,” said Bernd Kleinhens, chairman of the Management Board of NORMA
Group. “We will seek to continue on our growth path in the future as
well by further diversifying and localizing our business and tapping
into the potential that important future markets such as electromobility
and water management offers.”

Growth in all three regions

In the EMEA region (Europe, Middle East and Africa), NORMA
Group increased its sales by 12.5 percent in 2017 to EUR 485.9 million
compared to the previous year (2016: EUR 432.0 million). This can be
attributed to strong demand for joining technology in the European
automobile industry and the acquisitions of the Autoline business in
France and Lifial in Portugal.

The Americas region recorded sales growth of 7.8 percent to EUR
411.3 million compared to the year before (2016: EUR 381.6 million). The
U.S. commercial vehicle and agricultural machinery markets recovered
strongly; the automotive sector developed well, and the Mexican Autoline
business that the company acquired in November 2016 contributed to
growth as well.

In the Asia-Pacific region, NORMA Group increased its sales to
EUR 119.9 million in 2017, an increase of 47.6 percent compared to the
previous year (2016: EUR 81.3 million). Stricter emission standards led
to high demand for joining technology from the Asian vehicle industry.
The acquisitions of Fengfan and the Chinese Autoline business also had a
positive effect on sales growth.

Increase of the dividend to EUR 1.05 per share proposed

The Management Board and Supervisory Board of NORMA Group SE will
propose a dividend of EUR 1.05 per share for fiscal year 2017 at the
Annual General Meeting on May 17, 2018. This equates to an increase of
10.5 percent or EUR 0.10 and a distribution amount of around EUR 33.5
million. The payout ratio would thus be 31.9 percent of adjusted Group
earnings in fiscal year 2017 of EUR 105.0 million.

“We have consistently pursued our growth strategy since the IPO and are
proud to enable our shareholders to participate in our growth with yet
another increase in the dividend,” said Dr. Michael Schneider, CFO of
NORMA Group. “Our focus is clearly on the sustainable development of the
company that will continue to create value in the future.”

Increased equity ratio

Group equity amounted to EUR 534.3 million as of December 31, 2017. This
corresponds to an increase of 10.5 percent compared to the end of the
previous year (December 31, 2016: EUR 483.6 million). Despite the
dividend payment of EUR 30.3 million and negative currency translation
differences of EUR 35.8 million, the equity ratio improved to 40.7
percent at the end of 2017 (December 31, 2016: 36.2 percent). Net debt
including hedging instruments decreased by 12.5 percent to EUR 344.9
million as of December 31, 2017 (December 31, 2016: EUR 394.2 million).

The number of employees at NORMA Group increased to 7,667, including
temporary workers (December 31, 2016: 6,664). The increase resulted in
particular from the acquisitions of Fengfan and Lifial and the expansion
of the workforce due to organic growth.

Solid organic growth of around 3 to 5 percent expected for 2018

NORMA Group expects the global economy to continue to pick up again in
2018, driven by growth, particularly in China, the U.S. and emerging
markets.

For the EMEA region, NORMA Group anticipates solid organic growth
in 2018 compared to 2017. This assessment is based in particular on the
sound economic environment in the region, the still low key interest
rates and the positive growth forecasts for key end markets of NORMA
Group, such as the European automobile industry.

For the Americas, NORMA Group expects solid organic sales growth
in 2018 compared to the previous year. The positive trend in the U.S.
commercial vehicle and agricultural machinery markets is expected to
continue and a moderate increase in production figures in the U.S.
passenger car market is forecast. In the water management sector,
positive catch-up effects are expected as a consequence of the
weather-related weak previous year. Massive tax cuts in the U.S. should
also have a positive impact on the economy in the short term and further
boost growth in the region.

In the Asia-Pacific region, the dynamic development of NORMA
Group’s business activities will continue in the current year despite
the slightly lower growth forecasts for China. As a result, the
Management Board expects double-digit organic growth for the region.
Increasing business activities and further localization measures in the
region as well as stricter emission regulations for cars and trucks are
the main drivers.

Overall, the Management Board of NORMA Group expects solid organic Group
sales growth of around 3 to 5 percent for 2018. In addition, revenues
from the acquisition of Fengfan in the amount of around EUR 5 million
are expected. The Management Board expects as strong as usual net
operating cash flow of approx. EUR 140 million in 2018. For 2018, a
sustainable adjusted EBITA margin of more than 17 percent (previous
year: 17.2 percent, 2016: 17.6 percent, 2015: 17.6 percent) will again
be the target. In particular, due to the tax cuts in the U.S., the
Management Board expects a significantly improved tax rate of between 26
and 28 percent for fiscal year 2018 and a strong increase in adjusted
earnings per share.

Separate Corporate Responsibility Report pursuant to the “CSR
Directive Implementation Act”

NORMA Group has complied with the requirements of the CSR
Directive Implementation Act for more transparency on the
environmental and social responsibility of companies for reporting on
fiscal year 2017. For this purpose, a separate Corporate Responsibility
Report (CR Report) was published at the same time as the Annual Report
on March 21, 2018. Among the sustainability indicators it mentions are
employee and environmental indicators, as well as key figures on human
rights and supply chain sustainability. More information can be found in
the 2017
CR Report.

*Adjustment in 2017 for integration costs (EUR 2.9 million), step-up
effects from purchase price allocations (EUR 1.1 million) and
reimbursement of transaction taxes (EUR -0.5 million) and depreciation
on purchase price allocations (EUR 4.2 million); 2016: depreciation on
purchase price allocations (EUR 2.3 million) and other expenses mainly
related to the acquisition of Autoline (EUR 4.8 million, in particular
other operating expenses)

**Net debt including hedging instruments (hedging instruments in the
amount of: 2017: EUR 1.4 million; 2016: EUR 2.2 million; 2015: EUR 3.4
million)

The 2017 Annual Report can be downloaded from www.normagroup.com/financial
reports. You can download the CR Report from www.normagroup.com/Sustainability
Reports. Press photos are available from our platform at www.normagroup.com/images.

About NORMA Group

NORMA Group is a global market leader in engineered joining technology.
The company manufactures a wide range of innovative connecting solutions
and water management technology offering more than 40,000 products to
customers in 100 countries with around 7,700 employees. NORMA Group
helps its customers and business partners react to global challenges
such as climate change and increasing scarcity of resources. NORMA Group
joining products can be found in vehicles and trains, ships and
aircraft, buildings and water management as well as in applications for
the pharmaceutical and biotechnology industry. In 2017 the company
generated sales of around EUR 1.02 billion. NORMA Group operates a
global network of 27 production facilities as well as numerous sales and
distribution sites across Europe, the Americas, and Asia-Pacific. NORMA
Group has its headquarters in Maintal, Germany. NORMA Group SE is listed
on the German stock exchange (Prime Standard) and included in the MDAX
index.

Disclaimer

This press release contains certain future-oriented statements.
Future-oriented statements include all statements which do not relate to
historical facts and events and contain future-oriented expressions such
as “believe,” “estimate,” “assume,” “expect,” “forecast,” “intend,”
“could,” or “should” or expressions of a similar kind. Such
future-oriented statements are subject to risks and uncertainties since
they relate to future events and are based on the company’s current
assumptions, which may not in the future take place or be fulfilled as
expected. The company points out that such future-oriented statements
provide no guarantee for the future and that the actual events including
the financial position and profitability of NORMA Group SE and
developments in the economic and regulatory fundamentals may vary
substantially (particularly on the down side) from those explicitly or
implicitly assumed in these statements. Even if the actual assets for
NORMA Group SE, including its financial position and profitability and
the economic and regulatory fundamentals, are in accordance with such
future-oriented statements in this press release, no guarantee can be
given that this will continue to be the case in the future.

Contacts

NORMA Group
Alexandra Lipkowski
Group Communications
Tel.:
+49 (0)6181 – 6102 747
E-Mail: [email protected]
or
Andreas
Trösch
Investor Relations
Tel: +49 (0)6181 – 6102 741
E-Mail:
[email protected]